Monday, March 8, 2010

CPF for Home Ownership

Ordinary Account savings can be used to buy a home under the CPF Housing scheme.
  • Public Housing Scheme - for HDB flats. You need to be insured under Home Protection Scheme (HPS)
  • Residential Properties Scheme - for private properties
  •  for full or partial payment of the property
  • to service monthly housing payments
  • You can use your Ordinary Account savings, and the future monthly CPF contributions in this account to buy a flat and/or pay the monthly instalments of the housing loan up to 100% of the Valuation Limit (VL). The VL is the lower of the purchase price or the value of the flat at the time of purchase.
  • For members taking a bank loan to assist them in the purchase of a HDB flat, they are required to pay the first 5% of the downpayment in cash before they could use their CPF savings towards the purchase.
Making capital repayments or revising monthly instalment amount if you took a bank loan to pay for HDB flat
  • instruct your financier, who has linked up with the Board, to liaise directly with the Board; or
  • submit your application (HBL/3) directly to the Board.
To pay for stamp duty
  • submit the HBL/1 application to the Board at least 10 days before the required payment due date.
Using CPF to pay for downpayment for an HDB flat financed by bank loan
  • with effect from 1 Jan 2004, new buyers would have to pay Y% down payment by cash. The balance of the down payment (10% - Y ) can be paid using CPF
  • The down payment is computed based on the Valuation Limit (VL)
Home Protection Scheme (HPS)
  • a mortgage reducing insurance which insures CPF members and their families against losing their homes should members become physically / mentally incapacitated or pass away before their housing loans are paid up.
  • you can apply to be insured if you are a CPF member and an owner of the flat
  • you have to be insured under HPS if you are using your CPF savings to pay your monthly housing instalments on your HDB flat. 
  • HPS cover is subject to your health condition. 
  • HPS insures you up to 65 years of age or until your housing loan is paid up, whichever is earlier.
Application for HPS
  • If you are taking a HDB loan, you may apply for Home Protection Scheme (HPS) at the same time as you are applying to withdraw your CPF for your HDB flat.
  • If you are taking a bank loan, you can complete Form HBL, available at the banks, solicitors or any CPF Service Centres.
  • you may apply for HPS cover online via my cpf Online Services -  My Requests

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